What's Next?

The title is a little too open ended. I should add clarity. I will talk about two things: the market and what I see as the next big public issue. That is not to say that the present public concerns have been addressd. They have not. Homelessness is the biggest growth issue as well as inflation. The US is getting hit with a double whammy. We oursourced our middle class jobs, but the supply chain to those products got an unexpected bump in the road with COVID. 

We are in for difficult times. Affordable housing gets constructed at a 100,000 units per year. At the moment we have more than one million new low-wage immigrants at the border not to mention the countless more Americans living in cars, vans and vacant lots. It is worth repeating. We are in for difficult times.

Market

It is dropping on high volume. The bounces are at lower highs and the lows at at new levels. Of course, we are in "window dressing." This is the first few days of the month when funds put money into the market. It is the force that always seems to drive the market higher. There will be an unwritten market test. If the market cannot break up over its range, the previous trend, falling, will resume. At present, here at Evolution, we see the Dow testing the 29,200 level. The transports are in sync. They could drop to 13,000 and NASDAQ is leading the down charge. It could hit the 11,000 range. Within the NASDAQ, the three Qs could broach 260. It was as of last Friday, 315. When markets crater like this, it is like swimming naked. The moving tide reveals all things. Sebatian will point out two firms that had big run-ups. People buy into these stocks because they think that someone knows something. This is a flaw in charting. It is why I always like to know the fundamentals as a sidekick to charting.

Teladoc Health (TDOC). This company enjoyed a huge run-up due to COVID. It really has no earnings. It reached $308 in February of 2021 and last Friday, closed at $33 and change.

Carvana Co. (CVNA). This is another firm with little in the bank. Last August it touched $376 per share. As of last Friday, you could get the same stock for $57. Both of these forms demonstrated destruction of capital. Always do your homework. There is no free lunch.

Fed Today...

they will try to control the narrative in our economy and mostly, the market as well as you and I. Whatever BS they throw out after their action will have a lot to do with the near-term market price action.

King $Dollar

You should always watch the price action of the US Dollar. It has been rising as a safe heaven due to world geo-concerns. It pierced $103 last Friday. This price action came from the $95 level. It went straight up. However, long-term charts show resistence at $104. If the dollar breaks higher than that, $120 is game. This will not be good news for the precious metals and commodities. On the contrary view, the dollar could be forming a triple top in charting. This is bearish. It fell back on Friday to $102. Watch King Dollar!

Plastics

This will be the next big public concern. It has been a long time since the "Graduate." He is old and is getting health concerns. When he heard the suggestion of "plastics" no one knew this issue. It is tied to health. Just like the health issue of cigarettes and climate change with fossel fuel, plastics are a problem. They have ingredients that cause cancer. They are in every plastic bottle like water. Talk about irony? We have to have water to live, but drinking it from plastic could cause cancer. Already, the American Chemistry Council is putting out lies to challenge the science and to protect their idustry. Instead of seeking to develop a safe container while they are making huge profits, these no vision CEOs, are playing the same old, same old game. They throw out more garbage to confuse the public. Just like the previous idiot at Exxon, Lee Raymond. He had the chance to develop solar and wind energy at its invent. Instead, he played the confuse the public game. He is a disgrace in our eyes. By the way, the garbage lies by plastic firms are filling up our dump sites and clog our waterways and hurt our oceans. That should tell everyone something.  Pray for peace in Ukraine and Peace to all.